Relative to the Rest of the World, Inflation in the United

question 29

Multiple Choice

Relative to the rest of the world, inflation in the United States will cause which of the following?

• A)Prices of U.S. goods will become relatively lower than prices of similar goods in other countries.
• B)Foreign demand for U.S. goods will be less than without the inflation.
• C)U.S. firms will get a larger share of the world markets.
• D)The Fed will likely lower interest rates.

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Definitions:

Survival Value

The significance of behaviors in increasing an organism's chance of survival and reproduction.

Helping Behaviors

Refers to actions taken to benefit another person or group without expecting anything in return.

Drive-Reduction Theory

A theory in psychology that explains motivation as being rooted in the desire to reduce internal tensions caused by unmet biological needs.

Internal Tension

Psychological stress or discomfort that arises from conflicting beliefs, thoughts, or feelings within oneself.